SECP facilitating corporate sector in collection of annual returns and accounts

ISLAMABAD, November 28: In order to facilitate the filing of annual statutory returns and accounts, the Company Registration Offices (CROs) of the Securities and Exchange Commission of Pakistan (SECP) is extending facilitation in collection of annual returns and accounts.

The last date of filing of Forms A/B for companies other than listed companies, which held their AGM on October 31, 2011, is November 30. The companies are required to file annual returns on Forms A/B within 45 days, in case of listed companies and 30 days in case of other companies, of holding of annual general meetings (AGMs). The annual audited accounts are required to be filed within 30 days of holding of AGMs.

The SECP has provided the facility for collection of returns and accounts, at the Chambers of Commerce and Industry, in the cities of Sialkot, Hyderabad, Gujranwala, Gujrat, Rawalpindi, Bahawalpur, Rahim Yar Khan and Sheikhupura and its representatives will be present at these chambers on due dates of filing of Forms A/B, for collection of annual returns and accounts.

Special facilitation desks have been established at the CROs to facilitate companies in submission of annual returns and accounts. The CROs shall also remain open until  8 pm p.m.., on November 29-30.

Sui Southern Gas Company declares 25pc cash dividend, 5pc bonus

Sui Southern Gas Company  has earned a net profit of Rs. 4,724 million for financial year 2010-11 as compared to Rs. 4,399 million during the last corresponding period. In addition, the Company’s earnings-per-share for the period under review increased to Rs. 5.63 from Rs. 5.24 in FY 2009-10. The Board of Directors of SSGC, in its meeting held on 29 September 2011, approved the final accounts for the year ended 30 June 2011 and proposed a 25% cash dividend for its shareholders; in addition, 5% bonus shares was also declared by the Board.

FBR's Clarification regarding Payment of surcharge at 15% under section 4A of the Income Tax Ordinance 2011—levied vide Income Tax (Amendment) Ordinance 2011

The Federal Board of Revenue has announced that the 15@ surcharge under section 4A of the Income Tax Ordinance 2011 is payable by all tax payers of their tax liability for the Tax year 2011, irrespective of whether their tax year ends on 31st December 2010 or 30th June 2011 or any other date.

In a circular issued here today, the FBR has made certain clarifications to the 15% Surcharge under section 4A of the ordinance in view to address the queries being received by the Board suggesting multiple interpretations of this Section and to streamline the implementation of this time bound provision.The circular further clarifies that the Tax Liability for the entire Tax Year 2011 may not be subjected to the imposition of surcharge and the same be levied on the proportionate liability for a period of three and a half month.It may hence be noted again that the surcharge is to be computed @ 15% of the Income Tax payable for three months and a half on pro-rata basis and the tax liability inclusive of 15% surcharge so calculated is to be set off against the taxes withheld or collected in the tax year.

Experts compare notes on developing corporate sector at SECP Forum

At the first meeting of the SECP Financial Markets and Corporate Sector Development Forum on Thursday in Karachi key market experts, industrialists and policymakers shared their ideas on developing fair, transparent and efficient financial markets and a vibrant corporate sector.

The forum was a gathering a select group of best minds in the market. It was aimed at seeking guidance from the rich and diversified experience of key stakeholders from various sectors and professions, including Mr Shoukat Tareen, Mr Hussain Dawood, Mr Iqbal Ali Lakhani, Dr Ishrat Hussain, Mr Zakir Mahmood, Mr Shahid Ghaffar, Mr Mahmood Mandiviwala, Mr Shabbar Zaidi, and Mr. Omer Moershed.

While opening the session, Mr Mohammad Ali, the SECP Chairman, remarked that the SECP recognizes the need for developing vibrant markets, sectors and market players as well as for improving their capabilities and processes. That’s why it has engaged the external stakeholders in a consultative process both at policy level of the SECP Forum and working level of sector-specific committees. The ideas and suggestions shared at the forum will steer the SECP to be an effective regulator of the markets and contribute to the capital formation leading to the growth of the economy, he said. He stated that the guidance taken from the policy level of the SECP Forum will be implemented at the working level and would reflect in the SECP’s actions in the near future.

The forum discussed various issues that hampered the growth and development of the markets and corporate sector in the country and have resulted in fragmentation in the markets. The issues identified range from the access to capital for the SME sector and the outreach expansion of non-bank financial sector to the SME and rural areas of the country, development of second tier of financial institution after the banking sector, enhancing the investor base in the capital markets, implementation of an effective legal framework covering corporate rehabilitation, de-mutualization of stock exchanges and future trading etc. The participants also highlighted the immediate need for implementing Corporate Rehabilitation Act and De-Mutualization Act and urged the SECP to push forward the process in this regard.

The need to work on corporate governance and restructuring of SOEs, implementation of the national warehousing project to improve functioning of commodities exchanges and the need to clearly define DFIs role for infrastructure and industrial development of the country was also emphasized by the participants. Mr Tahir Mahmood, Commissioner, SECP, apprised participants of the improvements in the legal framework of the takeover and the corporate law that are under consideration at the Corporate Law Review Commission that has been reactivated by the SECP.

The forum in Karachi was the first event as part of the SECP’s monthly programme which will alternate between Karachi, Lahore and Islamabad inviting stakeholders from industry, regulators, academia, media, sector associations, multilateral agencies, market participants, and other important players. The second meeting of the forum will take place in Lahore

SECP tells holding companies to enhance public disclosure

ISLAMABAD: Group Companies Registration Regulations, 2008, were issued by the Securities and Exchange Commission of Pakistan in 2008 to provide a regulatory framework for the formation of group companies, comprising a holding company and its subsidiaries and to streamline the group ownership structures.

The Regulations provided a registration mechanism of holding companies along with their subsidiaries as a group with the SECP, and also provided an enabling framework for the group companies intending to avail themselves of tax relief from the FBR.

In order to further enhance the public disclosure of intra-group shareholding and financial position of the group companies, it has now been required that all the holding companies registered under the Regulations shall maintain their websites and place thereon the annual audited financial statements of their group along with their directors’ report and the auditors’ report. SRO No. 640(I)/2011 was issued on June 22, 2011, mandating the aforesaid requirement, and the holding companies have been required to report the compliance by intimating the SECP of their website address within 15 days of the issuance of the notification.

Arshad Ali to head FPCCI’s committee on Labour Manpower Export and Overseas Pakistanis

Syed Arshad Ali, a prominent name in the hospitality industry and a former chairman of the Pakistan Hotel Association, has been appointed as the Chairman of the FPCCI’s Standing Committee on Labour Manpower Export and Overseas Pakistanis.

Arshad Ali, Managing Director, Integrated Facilitators (Pvt) Ltd, has been assigned the responsibility by Senator Haji Ghulam Ali, President, Federation of Pakistan Chamber of Commerce & Industry (FPCCI), for the year 2011.

SECP proposes changes in NBFC Regulations, 2008

The Securities and Exchange Commission of Pakistan (SECP), vide S.R.O. 350 (I)/2011 dated May 5, 2011, has proposed certain amendments to the NBFC & Notified Entities Regulations, 2008 (the “Regulations”) and have also placed these amendments on its website to solicit comments from the public and concerned quarters.

While allowing operational flexibility to fund managers, measures have also been introduced to ensure investor protection. It is a step forward by the regulator for a more conducive regulatory framework to help the industry participants to benefit from growth opportunities.

The significant amendments encompass:

1. Replacement of seed capital requirements with minimum fund size to offer flexibility to fund managers in launching new mutual funds;

2. Restricting annual equity brokerage paid by a mutual fund to a single broker to 10% of its total brokerage expense, for promoting competitive brokerage services. Besides minimizing concentration risk posed to mutual funds, such measures are also aimed at encouraging other financial market participants to benefit from the diversified brokerage services rather than routing bulk transactions through single or a few brokers.

3. Empowerment of unit holders for decisions on material aspects of a mutual fund including transfer of its management rights;

4. Enhancement of role of trustees of mutual funds to ensure better safeguarding of unit holder interests and prohibiting them from investing in mutual funds for which they act as trustee.

5. Imposition of 5% cap on investment by a single unit holder in a mutual fund with the objective to contribute towards broadening the investor base.

6. Removal of minimum lease period for any lease to provide operational flexibility to leasing companies;

The SECP, as part of its continuous efforts for development of the capital markets has proposed the amendments in accordance with the best international practices and are aimed at encouraging the growth of mutual funds.

Any suggestions or comments on the proposed amendments may be submitted by May 21, 2011 at NBFC.Comments@secp.gov.pk

Press Statement: Karachi Chamber of Commerce and Industry

SECP nominate Aftab Ahmad Khan, Mumtaz Hussain Syed, Asif Kamal and Bushra Naz Malik as LSE directors

The Securities and Exchange Commission of Pakistan (SECP) has nominated high profile and experienced professionals from the financial and capital markets as directors on the Board of Lahore Stock Exchange (LSE) for 2011.

They are Mr. Aftab Ahmad Khan, Group Director (Finance & Accounts), Nishat Group; Mr. Mumtaz Hussain Syed, Chief Executive, Crosby Capital Pakistan (Private) Limited; Mr. Asif Kamal, Chairman, Trust Investment Bank Limited; and Ms. Bushra Naz Malik, former Group Director, Finance and Chief Financial Officer, Kohinoor Maple Leaf Group.

They come from the fields of project finance, accounts and investment banking have valuable capital market and corporate sector experience and can be seen as a fair mix of the requisite qualification and skills on the LSE Board.

Mr.. Aftab Ahmad Khan, Fellow Member of the Institute of Chartered Accountants of Pakistan, has over 40 years of diverse professional experience. Presently, he is the Group Director (Finance & Accounts) of the Nishat Group, in which capacity he looks after financial and strategic planning and investment appraisal for the Group. Additionally, he is serving as Director on the Boards of the MCB Bank Limited and various other companies in the textile, paper, energy and hotel/ tourism sectors. He also served in the public sector organizations including Punjab Industrial Development Board dealing with Ghee, Sugar and Rice Milling and has been Director at the National Investment Trust Limited, Karachi from 2008 to 2010.

Mr. Mumtaz Hussain Syed, an investment banker by profession, has more than 22 years of extensive experience in the fields of project finance, investment management and analysis, business development and general management and has several high profile transactions in energy, telecommunications, banking, financial services industry and other sectors to his credit. Presently, he is the Chief Executive of the Crosby Capital Pakistan (Private) Limited which is providing financial advisory, business restructuring and management consulting services to various clients. Holding an MBA degree from the Lahore University of Management Sciences, he possesses extensive capital market experience covering privatizations, acquisitions, divestitures, debt arrangement, equity placement and joint ventures. He has also served on the Board of Directors of a number of listed companies as well as advisory positions with the government of Pakistan.

Mr. Asif Kamal, a graduate in Finance from the Business School of the University of South Florida, is presently the Chairman of Trust Investment Bank Limited: one of the leading investment banks in Pakistan. He is also the Chief Executive of Tricon Developers Limited, a real estate development company. He has also served as the Chief Executive of Genesis Securities Private Limited from 1994 to 2006, which is a financial advisory company. His professional and capital market experience accumulating up to more than 16 years, Mr. Kamal is also a member of the Federal Board of Investment since 2008 and a member of the Board of the Privatization Commission since 2010.

Ms. Bushra Naz Malik, Fellow Member of the Institute of Chartered Accountants of Pakistan, has over 16 years of professional and financial market experience which includes her 12-year tenure as the Group Chief Financial Officer of the Nafees Group of Industries, Lahore and a 4-year term as the Group Director, Finance and Chief Financial Officer of the Kohinoor Maple Leaf Group. She did her MBA at Kellogg Business School in the US and the Schulich Business School, Canada. She also has an LLB degree from the Punjab College and Advanced Management Program certification from the Harvard Business School.

It is expected that the LSE Board of Directors, in particular, and the capital markets in general, will greatly benefit from the mix of extensive knowledge, experience and diverse expertise the above professionals will be offering, and that the said individuals will be contributing positively towards promoting principles of good governance and transparency.

Mufti Munib ur Rehman appoints as Memeber of Modarba religious board

ISLAMABAD, March 11: The federal government has appointed the renowned religious scholar Professor Mufti Munib ur Rehman as a member of the Religious Board for Modarabas (Islamic financial institutions) with immediate effect. The appointment has been made in pursuance of Section 9 of the 1980 Modaraba Companies and Modaraba (Floatation and Control) Ordinance.

This position fell vacant with Mr. Imran Ahsan Nyazee’s resignation. Mufti Munib ur Rehman will serve out the remaining term.

The board considers applications for floatation of modaraba in light of Shariah. It provides guidance, based on the teachings of Islam, to the Registrar (Modarabas) of the Securities and Exchange Commission of Pakistan.